Why employee recognition matters

Employee recognition is a formal or informal acknowledgement of an employee’s efforts or hard work which has been beyond the employer’s expectations. 

Employee recognition hasn’t received much importance from the employers in the past as it should have. However, many employers are recognising the importance of recognizing the efforts of their star employees in order to motivate, encourage and retain them.

When an employee joins an organization, his/her primary motive is to earn money and make a good living. However, with time the needs start to shift from just monetary gratification to psychological needs of recognition and prestige. When the second aspect- of meeting the psychological needs- does not happen, companies fail to retain some of the best talent despite handing them big paychecks. According to a Gallup study, “A lack of recognition remains one of the most common reasons why employees leave an organization”.  What's more is that some Gallup research suggests that the more talented the employee is, the faster they leave. This is precisely why recognition needs to be an integral part of the company policies. Recognition could just be a pat on the back for a job well done, high praise in front of peers or even a bonus for meeting a monthly goal.

An employee who is appreciated would be willing to go above and beyond the written job description or agreed job role.  Here’re a few reasons why employee recognition matters:

“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” - Simon Sinek, author best known for "Start With Why."

1.    Improves employee retention 

2.    Boosts productivity

3.    Better job satisfaction

4.    Promotes a healthy work environment 

5.    Frequent recognition builds meaning and purpose

6.    Enhances team spirit

7.    Encourages desired behaviour in employees by rewards and recognition

8.    Helps in building a strong employer brand 

9.    Turns employees into brand ambassadors of the company

There are various ways a manager can give recognition to their high performers 

1.    Public acknowledgement of recognition in the form of certificates or awards

2.    Private recognition from boss or in front of the team

3.    Promotion or increase in the scope of the work 

4.    Recognizing years of service in the organization

5.    Extending the appreciation of the employees to their families works great in creating long term emotional investment

6.    Monetary benefits in the form of bonus, appraisal, prize, etc. 

For many employees receiving sincere thanks or appreciation for their efforts is more important than receiving something tangible. A powerful recognition program increases employee engagement as well as employee morale. Hence, employees feel much more satisfied and valued and in turn become more productive for the organization.